KARACHI: The government raised Rs509 billion against the target of Rs600bn through auction of market treasury bills but kept the cut-off yield almost unchanged.

The State Bank of Pakistan reported that the three-month cut-off yield down by one basis point to 15.71 per cent. The 12-month t-bills yield also down by 1 basis point to 15.739pc. The benchmark 6-month paper rate was kept unchanged.

The SBP received bids of Rs997bn. For the last several auctions the T-bills rates are almost static as the interest rate is high at 15pc. However, bankers believe that due to very high inflation of over 26pc in October, the returns on T-bills are negative.

Published in Dawn, November 3rd, 2022